A significant development in Nigeria’s telecommunications sector has emerged as LH Telecommunication Limited has acquired a 95.5% stake in Emerging Markets Telecommunication Services Limited, the parent company of the struggling telecoms provider, 9mobile. According to a statement from the company, this acquisition is subject to regulatory approvals, which have been secured.
Regulatory Approvals
The Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC) have approved the acquisition. This endorsement is crucial as it allows the new investor to facilitate the injection of fresh capital into 9mobile. Additionally, it paves the way for the formation of a new board to oversee the company’s operations.
Investment and Change in Control
The African Export-Import Bank, the senior lender to 9mobile, approved the investment in May 2023. The issuance of new shares amounting to 95.5% has resulted in a change in control of 9mobile in favor of LH Telecommunication Limited.
New Board of Directors
Leadership and Experience
The company has announced the appointment of a new board, chaired by Thomas Etuh. The board also includes Nahim Ibraheem and Femi Edun as new members. The new leadership team brings a wealth of experience across various strategic sectors.
- Thomas Etuh: An entrepreneur with over 36 years of experience in sectors including agriculture, fertilizer production, mining, banking, telecommunications, power, and aviation. He has previously served as the Chairman of Unity Bank Plc, Veritas Kapital Assurance Plc, and Lighthouse Capital Limited. Currently, he is the Chairman of Notore Chemicals Industries Plc.
- Nahim Ibraheem: With over 30 years of experience in finance, oil trade, procurement, and manufacturing, he serves as the Chairman of Veritas Kapital Assurance PLC and Lighthouse Capital Limited. He is also a Non-Executive Director of the VFD Group and Veritas Glanvills Pensions Ltd.
- Femi Edun: A financial services professional with over 35 years of experience in assurance, consulting, credit ratings, investment banking, and proprietary investment. He has held roles in Akintola Williams & Co (now Deloitte), Price Waterhouse (now PwC), Agusto & Co. Limited, and Frontier Capital Limited.
Additional Board Members
Other board members include:
- Daisy Danjuma: Former Nigerian Senator
- Michael Ikpoki
- Ibrahim Puri
- Gloria Danjuma
- Emmanuel Etuh
New Management Team
Leadership Transition
The new board has ratified the appointment of Obafemi Banigbe as the Managing Director and Chief Executive Officer (CEO) of 9mobile. Banigbe brings over 24 years of experience in the telecommunications industry, having held positions such as Network Operations Director at Airtel Nigeria, Chief Technology Officer at Millicom International Cellular Tanzania, and Chief Operating Officer and interim CEO at Millicom Ghana.
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Key Appointments
- John Vasikiran: Appointed as Chief Operating Officer (COO)
- Abolaji Idowu: Appointed as Chief Financial Officer (CFO)
Historical Context and Future Prospects
Background
9mobile, formerly known as Etisalat Nigeria, was acquired by Teleology Holdings in November 2018. Despite efforts to stabilize the company, 9mobile has faced ownership tussles, rapid leadership changes, and financial hardships, failing to regain its former top-4 position among Nigerian telcos.
Current Market Position
As of March 2020, 9mobile had the lowest market share of 6.41% among all telecom operators in Nigeria. Subscriber numbers have declined from over 15 million in 2018 to 11.7 million voice subscribers and 3.3 million internet users, according to recent data from the National Bureau of Statistics.
Conclusion
The acquisition by LH Telecommunication Limited and the appointment of a new board and management team bring renewed hope for 9mobile. With fresh capital injection and experienced leadership, the company aims to stabilize and compete more effectively in Nigeria’s highly competitive telecom market. The new owners express optimism that these changes will enable 9mobile to recover and grow, ultimately benefiting its subscribers and stakeholders.